Bob Doll Says to Overweight Risk

The macro theme of the fourth quarter and early 2014 is monetary reflation and global growth resynchronization. The Fed's surprising decision to postpone tapering its QE program will likely encourage further risk-taking. In the meantime, we observe increasing signs of a synchronized improvement among the four important economies—the United States, Europe, Japan and China. The macro backdrop would imply equity price appreciation driven by continued earnings momentum and improving corporate profitability.